Prime XBT is a brand new cryptocurrency exchange that is giving clients the ability to trade a number of crypto pairs with leverage.
This will provide traders with another interesting alternative to the status quo with crypto margin trading. Prime XBT is trying to take on some of the more established Futures and CFD brokers that operate in the space.
However, can such a new exchange really be trusted?
In this Prime XBT review we will take an in-depth look at this exchange. We will cover some of the most important aspects including security, leverage, trading technology and fees.
PrimeXBT is a cryptocurrency exchange that is registered in the Seychelles. The holding company name is Prime XBT Trading Services and their Company number is 148707. The exchange opened their books to the market in early 2019.
One of the main selling points behind PrimeXBT is the fact that they have leveraged trading for a number of different assets. These include 6 cryptocurrency pairs with a max leverage of 100x and a number of forex / commodity assets with leverage up to 1,000x!
Prime XBT also makes use of the liquidity provided by larger exchanges and market makers in the industry. They aggregate or “pool” their liquidity from over 12 different exchanges.
Given that Prime XBT does not have any financial service licenses, there are some countries to which they can not offer their services to traders. These include the likes of the United States and a few other countries.
Prime XBT Leverage
For those that do not know, trading on leverage is a way for the individual to get more exposure to an asset than they have put down in funds. This gives the trader the advantage of making money on “borrowed funds”.
When you trade on leverage can potentially enhance your returns by a certain factor. Of course, this also works on the way down as losses are also magnified. Below is an example of how leverage will work on the PrimeXBT platform.
Overview of Leverage on Prime XBT
Another advantage of leveraged trading in general is that it allows you to short an asset. This means that you can make money on a fall in the price of the asset. In the case of a short position, you are borrowing the coin in question in order to sell it forward in the future.
As mentioned, the maximum leverage on PrimeXBT is 100:1 for the crypto pairs and up to 1,000:1 on some of their forex pairs. This means that you only need to put down a 1% (or 0.1%) of the required capital in order to take out that position.
The exact leverage that you will be allowed for the position will depend on the type of asset that you are trading as well as the size of the position that you are taking on. For example, here are the base margin requirements and resulting leverage for a range of assets.
You can see a full list of the leverage limits for the other assets in your account management area.
In order to most appropriately manage market risk, Prime XBT will reduce these leverage limits for those traders that have a higher exposure to the market. Below is an example of the leverage based on position size for Bitcoin and Ripple for example:
Leverage limits based on position size
As you can see, larger positions will require more margin and hence reduce your exposure – and subsequently broader risk.
With all of these leverage numbers, it is important to point out that this is the maximum leverage limit and you can indeed opt for a lower number level. This may in fact be a more prudent move as even the slightest amount of volatility in can lead to an exhaustion of funds with 100x or 1,000x leverage.
If there is a case where you exhaust your equity and the value of your account falls below a certain level then you will get what is termed a “Margin Call“. With traditional financial brokers, they will actually call you and ask for the margin. Prime XBT closes out the position instead as they need to manage the risk that they have on their books.
Is Prime XBT Safe?
Given the ever increasing news of cryptocurrency exchange hacks, one of the most important considerations for the trader is security. This is also one of our main review criteria when it comes to grading an exchange.
There is an entire section on the information page that details the security protocols that are employed by PrimeXBT.
Most of the coins that are held at PrimeXBT are kept in cold storage. This means that they are kept in a secure offline environment away from internet connection and the threat of potential hackers.
In order to service their current payments and withdrawals, they will also need to run a “hot wallet” but only a limited number of coins are kept in this state. In order to make any movements from the cold wallet to the hot wallet, they make use of multi-signature access.
This means that in order for any transactions to take place in the Prime XBT wallets, they will need the authorization from a number of different people who hold those keys. This reduces the risk of a single point of failure.
In terms of other security protocols that they have in place, they also make use of Cloudflare’s technology in order to mitigate the risks that are posed by Distributed Denial of Service Attacks (DDoS).
Like most exchanges and financial sites these days, PrimeXBT has full SSL encryption. This means that all communication that you send the exchange will be encrypted and make it hard for any malicious actors to intercept it.
The Prime XBT SSL Padlock
It will also help you identify if you have accidentally landed on a phishing site of some sort. This is because the actual login page should have a secure padlock in the browser. If you do not see this then it means that you could be on a phishing site and should leave immediately.
When it comes to storing your passwords, Prime XBT claims that they use the “bcrypt” algorithm. This means that even if a hacker were to access the servers of the exchange, they would not be able to read them.
Of course, even if a hacker is able to get hold of your password, Prime XBT offers two factor authentication. This means that you will have to authorise the login on your phone via the Google authenticator.
It is not mandatory for you to enable 2FA on your phone although it is highly encouraged. You can do this quite easily through your account management options in your “security settings”. PrimeXBT will present you with a QR code and a backup key.
Setting up 2FA in user Accounts on Prime XBT
It is incredibly important to save this backup key as it will be required for you to reset your 2FA in the case that your phone gets stolen or lost. If you do not have this then you may have to wait for up to seven days as the broker manually resets this.
Lastly, when it comes to withdrawals, Prime XBT is one of the few exchanges that require a mandatory white-labeling of Bitcoin addresses. This means that your funds cannot be sent to a rouge address in the instance where your account is breached.
Prime XBT Fees
Trading fees are a really important consideration as they can directly impact your profitability in the long run. If you trade a great deal of volume on an exchange then these fees add up on a cumulative basis.
PrimeXBT is quite transparent with their fees. They only have two types of fees and these are the trade fee and the overnight fee. The former is a fee that is charged for entering the position and the latter is for financing the position overnight. We have the fee breakdown for a selection of assets in the table below”
|Pair||Trading fee||Financing/day Long||Financing/day Short|
|BTC/USD||0.05%||-$3.9 per 1 BTC||-$3.9 per 1 BTC|
|ETH/USD||0.05%||-$0.13 per 1 ETH||-$0.13 per 1 ETH|
|XRP/USD||0.05%||-$0.00038 per 1 XRP||-$0.00038 per 1 XRP|
|EUR/USD||0.01%||-12.62 points||5.76 points|
|GBP/USD||0.01%||-9.15 points||2.9 points|
|Nasdaq||0.01%||-5.5 points||-3.5 points|
This places Prime XBT more in line with the fees model of a CFD broker than a Futures exchange. They are not charging settlement fees on the contracts but are charging an overnight rate for holding the position. The latter will not apply if you enter and exit the position within the day.
The trading fee of 0.01% – 0.05% is much lower than comparable CFD brokers such as IQ Option etc. If you are a trader that is trading with considerable volume then Prime XBT will consider volume-based discounts on most asset pairs. You can reach them on email@example.com should this apply.
In terms of funding your account, there are no fees that are applied to inward payments. However, if you are to withdraw funds from the exchange then you may have to pay an arbitrary miner fee in order to propagate your transaction (these are standard across the industry).
Prime XBT Registration
If you have decided that you would like to try out the PrimeXBT platform then you will need to register an account. In order to do this, you will need to provide them with an email and password. You also have the option to insert a referral code if you were given one (more on this later).
Registration form for Prime XBT
They will send out an email to the address that you have provided so that you can verify it. Once this is done you can log back into your account and access the trading platform and the account features.
Something that you may have noticed is that PrimeXBT does not require any forms of identification when you sign up. This is because they are one of the few exchanges that do not complete KYC or AML checks on their traders.
They are a fully anonymous exchange which can be advantageous for those traders that value their online privacy and would not like send over personal documentation. Moreover, this makes the exchange less of a target for identity thieves who are looking for juicy targets in databases.
Funding / Withdrawals
Prime XBT is a crypto only exchange. This means that they do not take any Fiat currency funding and you can only make deposits / withdrawals in Bitcoin. If you need to get your hands-on Bitcoin to fund then you will have to use a Fiat gateway such as Bitstamp or Kraken.
Once you have your Bitcoin, funding your account is relatively simple. You will head on over to to your account section and you will hit the “Deposit” button. This will take you to the deposit page where you can access your PrimeXBT Bitcoin address.
Deposit pages on Prime XBT
They have also tried to ease the burden of buying Bitcoin with Fiat as they have integrated a Changelly widget on their deposit section. This is a third party Bitcoin purchasing service where you can quickly buy your coins with the use of a credit / debit card.
Once you have the applicable address, you can send your Bitcoin in. The deposit may take a bit of time to show up in your account due to the fact that they require a total of 6 confirmations on the network before they will credit it.
Withdrawing from your account is just as simple. In this case you will head on over to the “withdraw” page where you will provide them with your personal Bitcoin address. This will be the Bitcoin address that you would like to white-label for all future withdrawals.
Initiating a withdrawal on the platform
Once you have requested the withdrawal, you will have to wait for them to process it. If you are requesting quite a sizable withdrawal then it may take a bit of time to be processed. This is because withdrawals are processed from the hot wallets and if they do not have enough on-hand they may have to access some from their offline cold wallets.
Prime XBT Trading Platform
As a trader, you will be spending over 90% of your time on the main trading platform. As such, it is quite important that it is well laid out and semi intuitive from a user interface perspective.
We were actually quite impressed with the Prime XBT trading platform. They have developed their own trading technology and there is extensive functionality which can satisfy traders of most skill levels.
On the PrimeXBT platform, you have three main sections which can be accessed in the header toolbar. These are the account administration section, the information section and the actual trading platform itself.
The main trading platform on Prime XBT
The first thing that you will notice about the platform is that it offers a large degree of customization. You can build out your own work-spaces that you can access at the top of the platform.
They have also designed this platform around “widgets”. This means that you can insert a new panel onto any one of your desired work-spaces. These widgets can contain a chart, order form, trades, messages etc.
You will select “add widget” and you will be given a list of different ones to choose from. You can spread the platform out across more than one screen or you can have numerous different markets on a single screen.
Adding trading widgets to PrimeXBT
When it comes to the charting package, PrimeXBT seems to have quite comprehensive charting functionality. This cold be ideal for those of you who like to trade with technical analysis.
For example, there are a number of customization options which allow you to alter the appearance of the charts. These include things such as the colors, grids and spacing. This is not something that we have seen on other charting packages developed by an exchange.
Taking a closer look at the actual tools that are at your disposal, you firstly have all the drawing tools that you will need to map your important levels. These include fan lines, Fibonaccis, retracements and other trend lines.
List of numerous charting functionality on Prime XBT
You also have a plethora of technical studies and indicators that you can use. These include all of the momentum indicators as well as relative strength and volume-based studies. You can also customize the indicators in terms of the time-frame and other important inputs.
For those traders who are more technical, you would prefer a broader range of order types and functionality. This will allow the trader to define specific levels for entries and exits. They are also imperative as a risk management instrument to limit losses especially when it comes to leveraged trading.
Order form at PrimeXBT
PrimeXBT has most of the standard order types as well as some protection orders. These include:
- Market Order: This is one of the more traditional order types and it will be placed and executed immediately at the prevailing market price. You will use this order if you want to buy / sell immediately.
- Limit Order: This is an order that is placed to buy / sell an asset at a pre-specified level away from the market. The moment that the market touches this level, your order will be executed. In terms of the length of time that these orders are in place, they are either “Good-till-cleared” which means they will remain like that forever. Alternatively, these could only be day orders that will be completed the moment that the trading day is closed.
- Stop Market Orders: These are orders that will become market orders the moment that a certain level has been reached. These are used by traders either to limit the losses on their position as a “Stop-loss” order or they are used in order to take a profit on a positive position.
- Protection Orders: These are available as additional protection on any position or order that you currently have. These can be placed on new Market, Limit or Stop orders by clicking on the “Place Stop Losses / Take Profit” box on the order form. Here you can set up a the protection orders to go with your main order above it.
- One-Cancels-the-Other (OCO): These are a set of orders whereby the execution of one order will cancel the other. Here, the number “1” order will be your main order and if this is executed, the other will be cancelled.
Given the amount of leverage that you will be trading with as well as the volatility in the crypto markets, we would suggest that you make use of the protection orders – for your own good.
Nothing can be quite as frustrating for a trader than an exchange that takes a long time to respond to their questions or customer support queries. This is why it is such an important criteria for us when we complete these reviews.
Given that Prime XBT is still a new exchange, there is no precedent when it comes to how long one is expected to wait for support responses. However, one of the biggest bottlenecks for previous exchanges was their KYC verification procedures. As mentioned, Prime XBT does not do this so it could free up support staff.
They claim to offer customers 24/7 support through a dedicated support email. You can contact their team on firstname.lastname@example.org if you have any questions that related to security, account management or product inquiries.
If you are logged into your account and you need help with regard to trading enquiries then you can reach out the them on live chat. This can be accessed by clicking the “Help” button in the top right of your screen.
Unfortunately, they do not have a dedicated phone line which you can dial in the case of an emergency. They also do not appear to have an online chat functionality but perhaps this is something that they could roll out later on.
Prime XBT Referral
If you have been using the exchange for a period of time and are comfortable with the service then you may want to consider getting involved with their referral program. This will allow you to earn a commission from referring friends to the platform.
Prime XBT operates a tier-based referral program where you will earn a percentage of trading fees not only on those traders that you directly refer but also a percentage from 2nd and 3rd tier referrals. Below are the commission rates:
Getting Your referral Link for PrimeXBT
This is better than the other futures exchanges such as BitMEX for example. Although they have the same commission for your direct referral, BitMEX does not offer tiered referral payouts. This means your earning potential is enhanced with PrimeXBT.
If this is something that you would like to get involved with then you will need to get your referral code. This is something that you can get in your account management page under the “referral” section. You can either elect to use a link with your code embedded or to give your referrals your code when they are signing up.
Tutorials & Guides
It’s always a nice touch when an exchange includes additional material to help smooth your trading experience. PrimeXBT is no exception.
If you are still struggling to use their trading platform then you can always head on over to their platform guide. This is available within the “Information” section in your when you are logged into your account.
If you would prefer a more visual guide then Prime XBT has included a number of video tutorials. These can be accessed from inside your account by clicking on the “Tutorials” section in the top right of your account.
Viewing the Platform guide (left) and videos (right)
These are professionally done and well presented. They include information such as how to place trades, set up stop-losses and protection orders, funding your account and safely using leverage.
Finally, Prime XBT also runs a pretty unique medium blog. Here you can find additional information on how to trade futures products. They also go over broader trading disciplines such as Technical / Fundamental analysis etc.
Areas For Improvement
While there were many things that we liked about the Prime XBT exchange, there are a few things that we think warrant improvement.
Firstly, when it comes to trading technology, they do not offer API functionality. This would allow developers to code their own bots and trading algorithms to trade on the PrimeXBT platform.
They also do not offer any PC client program or mobile app to trade on. This could limit the opportunity for those traders who would like to trade away from the browser-based platform. Perhaps this is something that they are considering down the line.
However, PrimeXBT officials suggested that native mobile app for both Android and Ios is already fully developed and currently waiting for Appstore and google store approval. According to the team, both apps should appear in a course of one month.
Lastly, they need to increase their online presence and they need to establish a longer track record in the industry. Of course, this is something that can only really come with time as they grow out their service.
It seems from this review that Prime XBT could be an attractive option for you to trade leveraged cryptocurrency instruments. There are numerous traders that are looking for alternatives to the likes of BitMEX et al. and the exchange is launching at an opportune time.
Indeed, the high leverage levels make it a similarly attractive proposal which will allow those users to magnify their returns on borrowed money. Of course, this is a double edged sword and leverage can chop you down on the flip side. Appropriate risk management is a must.
There were of course some things that we thought warranted improvement. However, these are all as a result of the brand new status of the exchange. They may have several improvements to their technology in the pipeline. Similarly, they can only really build up a track record with new traders.
So, is Prime XBT the exchange for you?
If you are looking for a leveraged cryptocurrency exchange with relatively advanced technology, transparent fees and strong security procedures then it should be considered. You will need to make a judgement on whether you are comfortable using a brand-new exchange service.
Featured Image via Prime XBT
Prime XBT Ratings
- Advanced Platform
- Attractive Fees
- Anonymous Accounts
- High Leverage
- No PC Client
- Only Email Support
- No API